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Gold on Track for Weekly Gain on Trump Uncertainty; US Jobs Report Awaited

A view shows ingots of 99.99 percent pure gold in a workroom during production at Krastsvetmet precious metals plant in the Siberian city of Krasnoyarsk, Russia, May 23, 2024. REUTERS/Alexander Manzyuk
A view shows ingots of 99.99 percent pure gold in a workroom during production at Krastsvetmet precious metals plant in the Siberian city of Krasnoyarsk, Russia, May 23, 2024. REUTERS/Alexander Manzyuk
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Gold on Track for Weekly Gain on Trump Uncertainty; US Jobs Report Awaited

A view shows ingots of 99.99 percent pure gold in a workroom during production at Krastsvetmet precious metals plant in the Siberian city of Krasnoyarsk, Russia, May 23, 2024. REUTERS/Alexander Manzyuk
A view shows ingots of 99.99 percent pure gold in a workroom during production at Krastsvetmet precious metals plant in the Siberian city of Krasnoyarsk, Russia, May 23, 2024. REUTERS/Alexander Manzyuk

Gold prices inched higher on Friday as uncertainty around US President-elect Donald Trump's policies firmed demand for bullion, while investors awaited a key jobs report to assess the Federal Reserve's rate cut trajectory.
Spot gold edged 0.2% higher to $2,675.49 per ounce as of 0725 GMT. Bullion has gained more than 1% so far this week, set for its highest weekly jump since mid-November. US gold futures rose 0.3% to $2,698.30.
The US non-farm payrolls report is due at 1330 GMT. According to a Reuters survey, payrolls are expected to have increased by 160,000 in December, following a jump of 227,000 in November.
"We expect gold to drop a little in case the non-farm payroll report comes on a higher side," said Jigar Trivedi, senior analyst at Reliance Securities.
"Gold found support after a weaker-than-expected private employment report for December reinforced the notion that the Fed may need to adopt a less cautious approach to rate cuts," Trivedi said.
Kansas City Fed President Jeff Schmid on Thursday signaled a reluctance to cut rates again as the Fed faces a resilient economy and inflation that remains above its 2% target.
Trump's proposed tariffs and immigration policies may also prolong the fight against inflation.
Traders now expect the first Fed rate cut this year in either May or June, according to the CME FedWatch Tool.
Gold acts as a hedge against inflation, but higher interest rates reduce the appeal of holding the bullion.
Spot silver was up 0.3% to $30.2 per ounce and the COMEX contract was trading at $31.17, both near one-month peaks.
"Our view is that the incoming US administration will tailor economic and trade policy to promote national prosperity, and that silver will recover along with gold in the second half (of 2025) to $35 per ounce," Deutsche Bank said in a note.
Platinum shed 0.4% to $955.97 and palladium added 0.9% to $934.16. All three metals were also set for weekly gains.

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Ukraine Receives First 3 Bln Euro Tranche of G7 Loan from EU

An explosion of a drone after it hit an apartment building is seen in the sky during a Russian drone strike, amid Russia's attack on Ukraine, in Kyiv, Ukraine January 10, 2025. REUTERS/Gleb Garanich
An explosion of a drone after it hit an apartment building is seen in the sky during a Russian drone strike, amid Russia's attack on Ukraine, in Kyiv, Ukraine January 10, 2025. REUTERS/Gleb Garanich
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Ukraine Receives First 3 Bln Euro Tranche of G7 Loan from EU

An explosion of a drone after it hit an apartment building is seen in the sky during a Russian drone strike, amid Russia's attack on Ukraine, in Kyiv, Ukraine January 10, 2025. REUTERS/Gleb Garanich
An explosion of a drone after it hit an apartment building is seen in the sky during a Russian drone strike, amid Russia's attack on Ukraine, in Kyiv, Ukraine January 10, 2025. REUTERS/Gleb Garanich

Ukraine received its first 3 billion euro ($3.09 billion) tranche of the European Union's portion of the Extraordinary Revenue Acceleration (ERA) loan agreed for Ukraine by the G7 group of countries, its prime minister Denys Shmyhal said on Friday.

It was the first tranche of EU loan secured by profits from frozen Russian assets, Shmyhal wrote on the Telegram app.

G7 leaders in October agreed to provide some $50 billion in loans to Ukraine via multiple channels.
"Today, we deliver €3 billion to Ukraine, the 1st payment of the EU part of the G7 loan. Giving Ukraine the financial power to continue fighting for its freedom – and prevail," European Commission President Ursula von der Leyen said on social media platform X.

In other economic news, Ukraine's steel output rose by 21.6% in 2024 to 7.58 million metric tons, its producers union said late on Thursday, though fighting that is closing in on the country's only coking coal mine threatens to slash volumes this year.

Steel production has already suffered since Russia's invasion on Feb. 24, 2022, which has led to the destruction of leading steel plants.

Ukraine, formerly a major steel producer and exporter, reported a 70.7% drop in output in 2022 to 6.3 million tons. It fell to 6 million tons in 2023.

The steelmakers' union said in October the potential closure of the Pokrovsk mine, Ukraine's only coking coal mine, could cause steel production to slump to 2-3 million metric tons in 2025.
Advancing Russian forces are less than 2 km (1.24 miles) from the mine, Ukrainian military analyst DeepState said on Friday.
The mine's owner, steelmaker Metinvest BV, said last month it had already halted some operations at the mine and two industry sources said it was operating at 50% capacity.
Producers have said they hope to find coking coal from elsewhere in Ukraine should the mine be seized by Russian troops, but imports would inevitably be needed which would raise costs.